Each day Sue works 8 hours and produces 7 units of goods and services. Mary works 10 hours each day and produces 10 units of goods and services. It follows that

Question

a. Mary's productivity is higher than Sue's.
b. Sue's productivity is higher than Mary's.
c. Sue's income per day will be higher than Mary's.
d. Sue's income per hour will be higher than Mary's.

Answer 1

To determine the productivity and income of Sue and Mary, we first need to calculate their productivity, which is defined as the number of units produced per hour worked.

1. Sue's productivity:

   • Sue works 8 hours and produces 7 units.
   • Productivity = Units produced / Hours worked = 7 units / 8 hours = 0.875 units per hour.

2. Mary's productivity:

   • Mary works 10 hours and produces 10 units.
   • Productivity = Units produced / Hours worked = 10 units / 10 hours = 1 unit per hour.

Now, we compare their productivities:

• Sue's productivity = 0.875 units/hour.
• Mary's productivity = 1 unit/hour.

Since 1 unit/hour (Mary's productivity) is greater than 0.875 units/hour (Sue's productivity), we can conclude that (a) Mary's productivity is higher than Sue's is correct.

Next, we need to consider their incomes. However, we do not have information about their wages (i.e., how much they earn per unit produced or per hour worked), so we cannot conclusively determine income components without further information regarding their wages. Thus, we cannot verify options c and d.

In summary:

• a. Mary's productivity is higher than Sue's. (This is correct.)
• b. Sue's productivity is higher than Mary's. (This is incorrect.)
• c. Sue's income per day will be higher than Mary's. (We cannot determine.)
• d. Sue's income per hour will be higher than Mary's. (We cannot determine.)

The correct answer is a. Mary's productivity is higher than Sue's.